US Market Highlights
On Wednesday, U.S. stocks closed sharply lower. The Nasdaq fell over 3%, and the Dow dropped nearly 700 points. Federal Reserve Chair Jerome Powell dampened market hopes for a rate cut by reiterating a wait-and-see stance during his public remarks. His hawkish comments sent stocks deeper into the red, with the Nasdaq tumbling more than 4% at one point and Treasury yields hitting intraday lows.
Speaking at the Economic Club of Chicago, Powell emphasized the Fed will wait for greater clarity before adjusting policy and dismissed the notion of a so-called “Fed put” (i.e., Fed intervention in response to market declines). He acknowledged that markets are facing significant uncertainties, leading to volatility, but said they are still functioning in an orderly and effective manner.
Regarding recent policies introduced by the Trump administration, Powell noted that their economic impact remains highly uncertain and continues to evolve. The Fed will keep updating its assessments as more data becomes available. He pointed out that announced tariff hikes have exceeded expectations and reiterated his earlier view that tariffs are likely to cause at least temporary inflation—and possibly more persistent effects.
Powell also suggested that if a conflict arises between inflation control and employment goals, the Fed may prioritize curbing inflation.
Tech Stocks
Major tech names saw steep losses:
Nvidia sank over 6%, Tesla dropped more than 4%, Apple, Meta, and Microsoft each lost over 3%, Amazon fell over 2%, and Alphabet (Google A) was down nearly 2%.
Chinese ADRs also dropped sharply, with the Nasdaq Golden Dragon China Index down 2.72%.
Notable movers included:
JD.com and XPeng down over 5%, Alibaba over 4%, Bilibili and Li Auto over 3%, NIO and Baidu over 2%, and Pinduoduo over 1%.
US Market – Technical Analysis
US Market Performance
- Dow Jones fell 699.57 points (-1.73%) to close at 39,669.39
- Nasdaq dropped 516.01 points (-3.07%) to 16,307.16
- S&P 500 declined 120.93 points (-2.24%) to 5,275.70
Hong Kong Markets Highlights
Hong Kong stocks continued to climb across all three major indices. Tech stocks led the rally:
NetEase rose nearly 4%, Kuaishou and Alibaba climbed over 3%, while Tencent, Lenovo, Bilibili, and Baidu all gained more than 2%.
Real estate stocks were also strong, with Shimao Group jumping over 10%.
Semiconductors remained active, with InnoSec up over 5%.
Gold miners saw early gains but pulled back, with Chifeng Gold up 3.53% at midday after spiking over 15%.
Spot gold broke above $3,350/oz in early trading, hitting fresh all-time highs. COMEX gold last traded at $3,359.50/oz.
UBS attributed the continued rally to rising geopolitical tensions and concerns over U.S. inflation and shifting interest rate expectations.
CITIC Securities also pointed to heightened safe-haven demand fueled by Trump’s unpredictable tariff policies.
Hong Kong Market – Technical Analysis
Hong Kong Market Performance
- Hang Seng Index rose 1.62% to 21,398.89
- Hang Seng Tech Index gained 2.30% to 4,906.57
- China Enterprises Index added 1.62% to 7,904.94
A-Share Market Highlights
Mainland China’s major indices opened lower but rallied through the morning session.
Total half-day turnover reached RMB 635.6 billion, about RMB 60 billion less than the previous session. Over 4,300 stocks advanced across the market.
Sector Highlights:
- Top gainers: Propylene oxide, real estate, semiconductors, tourism & hospitality
- Top losers: Logistics, precious metals
Notable Performers:
- Chemicals: Strong gains led by Red Avenue (3 consecutive limit-ups), Yida, Bohai Chemical, and Red Wall all hit limit-up.
- Consumer stocks: Retail, food, and tourism remained active. Guofang Group surged with 9 limit-ups in 10 days.
Others like Guifaxiang, Huatian Hotel, Jinling Hotel, Anjoy Foods, Wufangzhai, and Guoguang LianSuo also hit limit-up. - Real estate: Continued rebound with major names like Urban Investment, Tianbao Infrastructure, Yudevelopment, and Urban Construction hitting limit-up.
- Logistics: Led declines. Feilida, Huaguangyuanhai, and Changjiu Logistics dropped over 5%.
- Auto stocks: Under pressure, with BAIC BluePark and Seres down more than 4%.
China Market – Technical Analysis
China Market Performance
- Shanghai Composite rose 0.21% to 3,282.82
- Shenzhen Component gained 0.42% to 9,816.10
- ChiNext Index added 0.61% to 1,918.79
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Disclaimer
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